Question
(TCOs B and D) The following items are taken from the financial statements of Butler Company for 2012: Accounts Receivable $20,000 Cost of Goods Sold
(TCOs B and D) The following items are taken from the financial statements of Butler Company for 2012:
Accounts Receivable | $20,000 |
Cost of Goods Sold | 95,000 |
Utilities Expense | 3,500 |
Accounts Payable | 7,000 |
Common Stock | 100,000 |
Rent Expense | 5,500 |
Advertising Expense | 9,000 |
Dividends | 10,000 |
Insurance Expense | 2,000 |
Note Payable (due 2014) | 50,000 |
Depreciation Expense | 10,000 |
Prepaid Insurance | 18,000 |
Accumulated Depreciation | 30,000 |
Retained Earnings (beginning) | 33,000 |
Salaries Expense | 40,000 |
Salaries Payable | 4,500 |
Net sales | 170,000 |
Supplies | 3,000 |
Supplies Expense | 2,500 |
Instructions
(a) Calculate the net income. (18 points)
(b) Calculate the balance of Retained Earnings that would appear on a Balance Sheet at December 31, 2012. (7 points)
(c) Calculate the gross profit percentage. (5 points) (Points : 30)
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